Suppose the price of flour increases from $0.80 to $1.00 a pound and the quantity demanded decreases from 100 pounds to 95 pounds
Using the midpoint method, what is the price elasticity of demand for flour? Is the demand for flour elastic or inelastic?
The price elasticity of demand is 0.23. (The price elasticity is calculated from [(100 pounds - 95 pounds) ÷ 97.5 pounds] ÷ [($0.80 - $1.00 ) ÷ $0.90] = 0.23.) Because the elasticity is less than one, the demand is inelastic.
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The rate at which nations will exchange goods and services is known as the
A) exchange rate. B) transfer rate. C) terms of exchange. D) terms of trade.
Which of the following would correspond to a movement downward along a short-run Phillips curve? a. The aggregate demand curve shifts rightward, moving up along a short-run aggregate supply curve. b. The aggregate demand curve shifts leftward, moving down along a short-run aggregate supply curve. c. The short-run aggregate supply curve shifts leftward, moving up along the aggregate demand
curve. d. The money supply curve shifts rightward for a given money demand curve. e. Both the money demand and the money supply curves shift leftward.
Financial intermediaries include each of the following, except:
A. commercial banks. B. credit unions. C. savings banks. D. the New York Stock Exchange.
Technological change that increases the marginal productivity of labor in the classical model would cause
a. labor demand, output and the price level to rise. b. labor demand to fall, the price level to fall, and output to rise. d. labor demand, output and employment to rise. c. output to rise but labor demand to fall.